Kiara (single) is a 50 percent shareholder of Guardian Corporation (an S Corporation). Kiara does not...
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Kiara (single) is a 50 percent shareholder of Guardian Corporation (an S Corporation). Kiara does not do any work for Guardian Corporation. Guardian Corporation reported $312,000 of business income for the year (2022). Before considering her business income allocation from Guardian Corporation and the self-employment tax deduction (if any), Kiara's adjusted gross income was $262,000 (all employee salary). Kiara has $40,600 in itemized deductions. Answer the following questions for Kiara. a. What is Kiara's self-employment tax liability? b. Assuming the income allocated to Kiara is qualified business income, what is Kiara's deduction for qualified business income? Assume Kiara's share of wages paid by Guardian Corporation is $53,000 and her share in the unadjusted basis of qualified property used by Guardian was $206,000. c. What is Kiara's net investment income tax liability (assume no investment expenses)? d. What is Kiara's additional Medicare tax liability (include all earned income in computing the tax)? Kiara (single) is a 50 percent shareholder of Guardian Corporation (an S Corporation). Kiara does not do any work for Guardian Corporation. Guardian Corporation reported $312,000 of business income for the year (2022). Before considering her business income allocation from Guardian Corporation and the self-employment tax deduction (if any), Kiara's adjusted gross income was $262,000 (all employee salary). Kiara has $40,600 in itemized deductions. Answer the following questions for Kiara. a. What is Kiara's self-employment tax liability? b. Assuming the income allocated to Kiara is qualified business income, what is Kiara's deduction for qualified business income? Assume Kiara's share of wages paid by Guardian Corporation is $53,000 and her share in the unadjusted basis of qualified property used by Guardian was $206,000. c. What is Kiara's net investment income tax liability (assume no investment expenses)? d. What is Kiara's additional Medicare tax liability (include all earned income in computing the tax)?
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Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
Posted Date:
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